The brothers will invest a total of $90,000 combined ($55,000 and $35,000) in the start-up of the company. Initial cash requirements will total $50,000. Start-up assets total $55,000.
2.1 Start-up Summary
The following table describes our start-up requirements. One of our biggest start-up expenses involves the creation of a website. Ongoing maintenance expenses for the website are included in our Profit and Loss expenses section.
Start-up Funding
Start-up Expenses to Fund
$35,000
Start-up Assets to Fund
$55,000
Total Funding Required
$90,000
Assets
Non-cash Assets from Start-up
$25,000
Cash Requirements from Start-up
$50,000
Additional Cash Raised
$0
Cash Balance on Starting Date
$50,000
Total Assets
$75,000
Liabilities and Capital
Liabilities
Current Borrowing
$0
Long-term Liabilities
$0
Accounts Payable (Outstanding Bills)
$0
Other Current Liabilities (interest-free)
$0
Total Liabilities
$0
Capital
Planned Investment
Owner 1
$55,000
Owner 2
$35,000
Other
$0
Additional Investment Requirement
$0
Total Planned Investment
$90,000
Loss at Start-up (Start-up Expenses)
($35,000)
Total Capital
$55,000
Total Capital and Liabilities
$55,000
Total Funding
$90,000
Start-up
Requirements
Start-up Expenses
Legal
$2,000
Stationery etc.
$100
Brochures
$500
Consultants
$2,000
Insurance
$10,000
Rent (Deposit and 1st Month)
$3,000
Work Equipment
$6,000
Website Development
$10,000
Other
$1,400
Total Start-up Expenses
$35,000
Start-up Assets
Cash Required
$50,000
Other Current Assets
$5,000
Long-term Assets
$0
Total Assets
$55,000
Total Requirements
$90,000
2.2 Company Ownership
The company ownership will be shared by the Chairman and Chief Executive Officer in the following percentage amounts:
Chairman = 60%
Chief Executive Officer = 40%
Both owners are veterans in the building industry, each with over 25 years experience.
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